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Exercise 7-2 (Algo) Variable Costing Income Statement; Explanation of Difference in Net Operating Income (L07-2) Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $990. Selected data for the company's operations last year follow Units in beginning inventory 0 Units produced 200 Unita sold 180 Units in ending Inventory 20 Variable conta per unit Direct baterials 5120 Direct labor $30 Variable manufacturing overhead $40 Variable selling and administrative 530 T'ixed costs Fixed manufacturing overhead $ 56,000 Tixed selling and administrative $24.000 The absorption costing Income statement prepared by the company's accountant for last year appears below. Sales Cost of goods sold Cross Sargin Belling and administrative expense Not operating Incon 170.200 140.400 37,00 29.400 S8400 Required: insting how much fixed manufacturing overhead cost is included in the company's inventory at the end of last rear? 2. Prepare an income statement for last year using variable costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Under absorption costing, how much fixed manufacturing overhead cost is included in the company's Inventory at the end of last year? Freed manufacturing overhoed cont included in inventory Required 2 > Required 1 Required 2 Prepare an income statement for last year using variable costing. Ida Company Variable Costing Income Statement

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